Ghana’s Gold Refining Push Sparks Debate Over Taxes, Energy Costs and Jobs
Ghana is mandating local gold refining by September 2026, a move to boost national value retention. While the Ghana Chamber of Mines raises concerns about associated costs and urges government support through tax reviews and cheaper energy, the Association of Small-Scale Miners highlights the significant benefits of job creation and reduced unemployment. Both industry bodies agree that collaborative efforts between government and industry are essential to ensure the policy's commercial viability and success.
Ghana is set to make local gold refining mandatory from September 1, 2026, as the Ghana Gold Board (GoldBod) requires Self-Financing Aggregators to refine gold doré domestically before export.
The policy forms part of the government’s plan to retain more value from the country’s mineral resources and end raw mineral exports by 2030, while seeking London Bullion Market Association accreditation for at least one local refinery.
However, the Ghana Chamber of Mines has warned that the initiative could increase operating costs, with its CEO, Dr. Ken Ashigbey, urging the government to review taxes and levies affecting the mining industry.
A major concern for miners is the cost of electricity, which could make domestic refining commercially unviable without targeted support. Ashigbey has proposed preferential access to hydroelectric power and pointed to potential large-scale solar projects under the 24-hour economy initiative that could bring energy costs down, while also urging private refinery operators to invest in more efficient technology.
The Association of Small-Scale Miners, however, argues that the policy should be judged beyond immediate costs, pointing to job creation, youth employment and broader economic benefits from developing a domestic refining industry.
GoldBod has already taken steps to expand domestic value addition, including an agreement to purchase 30% of large-scale miners’ gold output in doré form for local refining and an arrangement with Gold Coast Refinery to process one metric tonne of small-scale miners’ gold weekly.
Both industry representatives support the principle of local beneficiation but differ on how the financial burden should be distributed between government, miners and refinery operators. The success of Ghana’s refining ambitions will ultimately depend on whether policymakers can balance the economic gains of local processing with the taxes, energy costs and operational expenses that could determine whether the industry remains commercially viable.